Financial Supplement

Exhibit 99.1

LOGO

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT (UNAUDITED)

FOURTH QUARTER AND FULL YEAR 2004

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT (UNAUDITED)

FOURTH QUARTER AND FULL YEAR 2004


		Page
Consolidated Statement of Income		1 - 2
Consolidated Balance Sheet		3
Capital and Asset Quality Ratios		3
Results of Businesses
Summary and Reconciliation to Total Consolidated Results		4 - 5
Banking Businesses
Regional Community Banking		6 - 7
Wholesale Banking		8 - 9
PNC Advisors		10-12
Asset Management and Processing Businesses
BlackRock		13-14
PFPC		15-16
Details of Net Interest Income, Net Interest Margin and Trading Revenue		17
Details of Noninterest Income and Noninterest Expense		18
Average Consolidated Balance Sheet		19-22
Details of Loans and Lending Statistics		23
Allowances for Loan and Lease Losses and Unfunded Loan Commitments and Letters of Credit and Net Unfunded Commitments		24
Details of Nonperforming Assets		25-26
Glossary of Terms		27-29
Business Segment Products and Services		30

The information contained in this Financial Supplement is preliminary, unaudited and based on data available at January 21, 2005. This information speaks only as of the particular date or dates included in the schedules. We do not undertake any obligation to, and disclaim any duty to, correct or update any of the information provided in this Financial Supplement. Our future financial performance is subject to risks and uncertainties as described in our SEC filings. We have reclassified certain prior period amounts included in this Financial Supplement to be consistent with the current period presentation. See our Current Report on Form 8-K dated April 5, 2004 regarding changes to the presentation of the results of our businesses as reflected in this Financial Supplement on pages 4 through 16. Business segment products and services are described on page 30.

The average full-time equivalent employee (FTE) statistics disclosed in this Financial Supplement for each business segment reflect staff directly employed by the respective business segment and exclude corporate and shared services employees.

The PNC Financial Services Group, Inc. (PNC) and Riggs National Corporation (Riggs) have filed with the United States Securities and Exchange Commission (SEC) a proxy statement/prospectus and will file other relevant documents concerning the merger of Riggs with and into PNC (Merger). We urge investors to read the proxy statement/prospectus and any other documents to be filed with the SEC in connection with the Merger or incorporated by reference in the proxy statement/prospectus, because they will contain important information. Investors will be able to obtain these documents free of charge at the SEC’s website (www.sec.gov). In addition, documents filed with the SEC by PNC will be available free of charge from Shareholder Relations at (800) 843-2206. Documents filed with the SEC by Riggs will be available free of charge from www.riggsbank.com.

The directors, executive officers, and certain other members of management of Riggs may be soliciting proxies in favor of the Merger from its shareholders. For information about these directors, executive officers, and members of management, shareholders are asked to refer to Riggs’ most recent annual meeting proxy statement, which is available at the web addresses provided in the preceding paragraph.

THE PNC FINANCIAL SERVICES GROUP, INC.

Consolidated Statement of Income (Unaudited)


*For the year ended - in millions, except per share data*	December 31 2004		December 31 2003			December 31 2002
Interest Income
Loans and fees on loans	$	2,043	$	1,962		$	2,294
Securities		568		581			616
Other		141		169			262

Total interest income		2,752		2,712			3,172

Interest Expense
Deposits		484		457			659
Borrowed funds		299		259			316

Total interest expense		783		716			975

Net interest income		1,969		1,996			2,197
Provision for credit losses		52		177			309

Net interest income less provision for credit losses		1,917		1,819			1,888

Noninterest Income
Asset management		994		861			853
Fund servicing		817		762			816
Service charges on deposits		252		239			227
Brokerage		219		184			195
Consumer services		264		251			239
Corporate services		473		485			526
Equity management gains (losses)		67		(25	)		(51	)
Net securities gains		55		116			89
Other		422		384			303

Total noninterest income		3,563		3,257			3,197

Noninterest Expense
Compensation		1,755		1,480			1,417
Employee benefits		309		324			284
Net occupancy		267		282			243
Equipment		290		276			271
Marketing		87		64			51
Other		1,027		1,050			961

Total noninterest expense		3,735		3,476			3,227

Income from continuing operations before minority and noncontrolling interests and income taxes		1,745		1,600			1,858
Minority and noncontrolling interests in income of consolidated entities		10		32			37
Income taxes		538		539			621

Income from continuing operations		1,197		1,029			1,200
Income (loss) from discontinued operations (less applicable income tax benefit of $9)							(16	)

Income before cumulative effect of accounting change		1,197		1,029			1,184
Cumulative effect of accounting change (less applicable income tax benefit of $14)				(28	)

Net income	$	1,197	$	1,001		$	1,184

Earnings Per Common Share
From continuing operations
Basic	$	4.25	$	3.68		$	4.23
Diluted	$	4.21	$	3.65		$	4.20

From net income
Basic	$	4.25	$	3.58		$	4.18
Diluted	$	4.21	$	3.55		$	4.15

Average Common Shares Outstanding
Basic		281		280			283
Diluted		284		281			285

Page 1

THE PNC FINANCIAL SERVICES GROUP, INC.

Consolidated Statement of Income (Unaudited)


*For the three months ended - in millions, except per share data*	December 31 2004		September 30 2004			June 30 2004		March 31 2004		December 31 2003
Interest Income
Loans and fees on loans	$	547	$	516		$	490	$	490	$	472
Securities		154		139			130		145		141
Other		42		30			38		31		47

Total interest income		743		685			658		666		660

Interest Expense
Deposits		152		121			107		104		102
Borrowed funds		88		73			70		68		73

Total interest expense		240		194			177		172		175

Net interest income		503		491			481		494		485
Provision for credit losses		19		13			8		12		34

Net interest income less provision for credit losses		484		478			473		482		451

Noninterest Income
Asset management		254		238			250		252		229
Fund servicing		209		204			200		204		193
Service charges on deposits		65		65			63		59		62
Brokerage		53		52			56		58		51
Consumer services		68		66			67		63		63
Corporate services		120		100			128		125		123
Equity management gains		9		16			35		7
Net securities gains		10		16			14		15		15
Other		116		81			97		128		125

Total noninterest income		904		838			910		911		861

Noninterest Expense
Compensation		452		500			414		389		389
Employee benefits		82		76			77		74		83
Net occupancy		64		68			67		68		65
Equipment		74		72			70		74		71
Marketing		24		19			24		20		15
Other		253		246			258		270		235

Total noninterest expense		949		981			910		895		858

Income before minority and noncontrolling interests and income taxes		439		335			473		498		454
Minority and noncontrolling interests in income (loss) of consolidated entities		5		(13	)		11		7		6
Income taxes		127		90			158		163		146

Income before cumulative effect of accounting change		307		258			304		328		302
Cumulative effect of accounting change (less applicable income tax benefit of $14)											(28	)

Net income	$	307	$	258		$	304	$	328	$	274

Earnings Per Common Share
Before cumulative effect of accounting change
Basic	$	1.09	$	.92		$	1.08	$	1.16	$	1.09
Diluted	$	1.08	$	.91		$	1.07	$	1.15	$	1.08
From net income
Basic	$	1.09	$	.92		$	1.08	$	1.16	$	.99
Diluted	$	1.08	$	.91		$	1.07	$	1.15	$	.98

Average Common Shares Outstanding
Basic		281		281			281		282		276
Diluted		283		283			283		284		278

Page 2

THE PNC FINANCIAL SERVICES GROUP, INC.

Consolidated Balance Sheet (Unaudited)


*In millions, except par value*	December 31 2004			September 30 2004			June 30 2004			March 31 2004			December 31 2003
Assets
Cash and due from banks	$	3,230		$	3,005		$	3,065		$	2,787		$	2,968
Federal funds sold and resale agreements		1,635			1,154			1,096			1,979			1,876
Other short-term investments		1,848			1,801			1,335			1,243			720
Loans held for sale		1,670			1,582			1,457			1,548			1,400
Securities		16,761			16,824			14,954			16,941			15,690
Loans, net of unearned income of $902, $931, $923, $980 and $1,009		43,495			42,480			40,835			39,451			36,303
Allowance for loan and lease losses		(607	)		(581	)		(593	)		(604	)		(632	)

Net loans		42,888			41,899			40,242			38,847			35,671
Goodwill		3,001			3,007			2,978			2,975			2,390
Other intangible assets		354			348			351			341			317
Other		8,336			7,678			7,641			7,454			7,136

Total assets	$	79,723		$	77,298		$	73,119		$	74,115		$	68,168

Liabilities
Deposits
Noninterest-bearing	$	12,915		$	12,461		$	12,246		$	11,879		$	11,505
Interest-bearing		40,354			38,701			37,748			36,246			33,736

Total deposits		53,269			51,162			49,994			48,125			45,241
Borrowed funds
Federal funds purchased		219			2,008			1,069			2,648			169
Repurchase agreements		1,376			1,595			1,163			1,279			1,081
Bank notes and senior debt		2,383			2,997			2,796			2,829			2,823
Subordinated debt		4,050			3,569			3,510			3,837			3,729
Commercial paper		2,251			1,805			1,743			1,934			2,226
Other borrowed funds		1,685			945			656			1,195			1,425

Total borrowed funds		11,964			12,919			10,937			13,722			11,453
Allowance for unfunded loan commitments and letters of credit		75			96			84			91			91
Accrued expenses		2,406			2,402			2,221			2,313			2,275
Other		4,032			2,908			2,400			2,216			2,001

Total liabilities		71,746			69,487			65,636			66,467			61,061

Authorized 800 shares, Minority and noncontrolling interests in consolidated entities		504			499			419			418			462

Shareholders’ Equity
Preferred stock (a)
Common stock - $5 par value Authorized 800 shares issued 353 shares		1,764			1,764			1,764			1,764			1,764
Capital surplus		1,265			1,246			1,235			1,209			1,108
Retained earnings		8,273			8,107			7,991			7,829			7,642
Deferred compensation expense		(51	)		(52	)		(54	)		(27	)		(29	)
Accumulated other comprehensive (loss) income		(54	)		(25	)		(139	)		180			60
Common stock held in treasury at cost: 70, 70, 71, 71 and 76 shares		(3,724	)		(3,728	)		(3,733	)		(3,725	)		(3,900	)

Total shareholders’ equity		7,473			7,312			7,064			7,230			6,645

Total liabilities, minority and noncontrolling interests, and shareholders’ equity	$	79,723		$	77,298		$	73,119		$	74,115		$	68,168

CAPITAL RATIOS
Tier 1 Risk-based (b)		9.0	%		9.0	%		9.1	%		9.1	%		9.5	%
Total Risk-based (b)		13.0			12.5			12.9			13.1			13.8
Leverage (b)		7.6			7.7			7.7			7.7			8.2
Tangible common		5.7			5.6			5.6			5.8			6.3
Shareholders’ equity to total assets		9.37			9.46			9.66			9.76			9.75
Common shareholders’ equity to total assets		9.36			9.45			9.65			9.74			9.73

ASSET QUALITY RATIOS
Nonperforming assets to total loans, loans held for sale and foreclosed assets		.39	%		.42	%		.49	%		.56	%		.87	%
Nonperforming loans to loans		.33			.35			.41			.46			.73
Net charge-offs to average loans (For the three months ended)		.13			.12			.26			.64			.53
Allowance for loan and lease losses to loans		1.40			1.37			1.45			1.53			1.74
Allowance for loan and lease losses to nonperforming loans		424			393			351			330			238

(a)	Less than $.5 million at each date.

(b)	Estimated for December 31, 2004.

Page 3

THE PNC FINANCIAL SERVICES GROUP, INC.

Results of Businesses - Summary and Reconciliation to Total Consolidated Results (Unaudited) (a)

Year ended – dollars in millions


Earnings	December 31 2004			December 31 2003
Banking businesses
Regional Community Banking	$	504		$	477
Wholesale Banking		443			391
PNC Advisors		106			89

Total banking businesses		1,053			957

Asset management and processing businesses
BlackRock (b)		143			155
PFPC		70			64

Total asset management and processing businesses		213			219

Total business segment earnings		1,266			1,176
Minority interest in income of BlackRock		(42	)		(47	)
Other		(27	)		(100	)

Results before cumulative effect of accounting change		1,197			1,029
Cumulative effect of accounting change					(28	)

Total consolidated earnings	$	1,197		$	1,001


Revenue (c)	December 31 2004			December 31 2003
Banking businesses
Regional Community Banking	$	2,073		$	1,892
Wholesale Banking		1,271			1,282
PNC Advisors		629			615

Total banking businesses		3,973			3,789

Asset management and processing businesses
BlackRock		725			598
PFPC		814			762

Total asset management and processing businesses		1,539			1,360

Total business segment revenue		5,512			5,149
Other		40			114

Total consolidated revenue	$	5,552		$	5,263

(a)

See our Current Report on Form 8-K dated April 5, 2004 regarding changes to the presentation of the results of our businesses. Our business segment information is presented based on our management accounting practices and our management structure. We refine our methodologies from time to time as our management accounting practices are enhanced and our businesses change.

(b)	BlackRock results for 2004 reflect after-tax charges totaling $65 million for BlackRock’s 2002 Long-Term Retention and Incentive Program (LTIP).

(c)

Business segment revenue is presented on a taxable-equivalent basis except for BlackRock and PFPC. BlackRock began reporting revenue on a taxable-equivalent basis in 2004. BlackRock for 2003 and PFPC for both years is presented on a book (GAAP) basis. The interest income earned on certain earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than a taxable investment. To provide accurate comparisons of yields and margins for all earning assets, we have increased the interest income earned on tax-exempt assets to make them fully equivalent to other taxable interest income investments. The following is a reconciliation of total consolidated revenue on a book (GAAP) basis to total consolidated revenue on a taxable-equivalent basis (in millions):


	December 31 2004		December 31 2003
Total consolidated revenue, book (GAAP) basis	$	5,532	$	5,253
Taxable-equivalent adjustment		20		10

Total consolidated revenue, taxable-equivalent basis	$	5,552	$	5,263

Page 4

THE PNC FINANCIAL SERVICES GROUP, INC.

Results of Businesses - Summary and Reconciliation to Total Consolidated Results (Unaudited) (a)

Three months ended – dollars in millions


Earnings	December 31 2004			September 30 2004			June 30 2004			March 31 2004			December 31 2003
Banking businesses
Regional Community Banking	$	143		$	134		$	125		$	102		$	127
Wholesale Banking		108			100			113			122			117
PNC Advisors		24			24			27			31			20

Total banking businesses		275			258			265			255			264

Asset management and processing businesses
BlackRock (b)		50			(10	)		48			55			41
PFPC		20			17			17			16			18

Total asset management and processing businesses		70			7			65			71			59

Total business segment earnings		345			265			330			326			323
Minority interest in (income) loss of BlackRock		(15	)		3			(14	)		(16	)		(12	)
Other		(23	)		(10	)		(12	)		18			(9	)

Results before cumulative effect of accounting change		307			258			304			328			302
Cumulative effect of accounting change														(28	)

Total consolidated earnings	$	307		$	258		$	304		$	328		$	274


Revenue (c)	December 31 2004			September 30 2004			June 30 2004			March 31 2004			December 31 2003
Banking businesses
Regional Community Banking	$	536		$	525		$	511		$	501		$	489
Wholesale Banking		333			299			322			317			330
PNC Advisors		154			151			154			170			159

Total banking businesses		1,023			975			987			988			978

Asset management and processing businesses
BlackRock		188			171			184			182			161
PFPC		209			203			199			203			194

Total asset management and processing businesses		397			374			383			385			355

Total business segment revenue		1,420			1,349			1,370			1,373			1,333
Other		(7	)		(13	)		25			35			16

Total consolidated revenue	$	1,413		$	1,336		$	1,395		$	1,408		$	1,349

(a)	See Note (a) on page 4.

(b)	BlackRock results for the third quarter of 2004 reflect a $57 million after-tax charge for the BlackRock LTIP.

(c)

Business segment revenue is presented on a taxable-equivalent basis except for BlackRock and PFPC. BlackRock began reporting revenue on a taxable-equivalent basis in the third quarter of 2004. BlackRock for all other prior periods and PFPC for all periods is presented on a book (GAAP) basis. The interest income earned on certain earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than a taxable investment. To provide accurate comparisons of yields and margins for all earning assets, we have increased the interest income earned on tax-exempt assets to make them fully equivalent to other taxable interest income investments. The following is a reconciliation of total consolidated revenue on a book (GAAP) basis to total consolidated revenue on a taxable-equivalent basis (in millions):


	December 31 2004		September 30 2004		June 30 2004		March 31 2004		December 31 2003
Total consolidated revenue, book (GAAP) basis	$	1,407	$	1,329	$	1,391	$	1,405	$	1,346
Taxable-equivalent adjustment		6		7		4		3		3

Total consolidated revenue, taxable-equivalent basis	$	1,413	$	1,336	$	1,395	$	1,408	$	1,349

Page 5

THE PNC FINANCIAL SERVICES GROUP, INC.

Regional Community Banking (Unaudited) (a)


*Year ended; taxable-equivalent basis (a)* *Dollars in millions*	December 31 2004			December 31 2003
INCOME STATEMENT
Net interest income	$	1,360		$	1,223
Noninterest income
Service charges on deposits		242			228
Investment products		112			116
Other		359			325

Total noninterest income		713			669

Total revenue		2,073			1,892
Provision for credit losses		62			40
Noninterest expense
Compensation and employee benefits		534			484
Net occupancy and equipment		263			245
Other		419			373

Total noninterest expense		1,216			1,102

Pretax earnings		795			750
Income taxes		291			273

Earnings	$	504		$	477

AVERAGE BALANCE SHEET
Loans
Consumer
Home equity	$	10,791		$	8,285
Indirect		843			477
Other consumer		547			510

Total consumer		12,181			9,272
Commercial		4,034			3,218
Floor plan		970			844
Residential mortgage		759			466
Other		25			23

Total loans		17,969			13,823
Goodwill		1,001			429
Loans held for sale		1,183			1,164
Other assets		1,588			1,333

Total assets	$	21,741		$	16,749

Deposits
Noninterest-bearing demand	$	6,584		$	5,575
Interest-bearing demand		6,967			6,308
Money market		12,217			12,303

Total transaction deposits		25,768			24,186
Savings		2,611			2,023
Certificates of deposit		8,782			8,572

Total deposits		37,161			34,781
Other liabilities		243			168
Capital		2,380			2,231

Total funds	$	39,784		$	37,180

PERFORMANCE RATIOS
Return on capital		21	%		21	%
Noninterest income to total revenue		34			35
Efficiency		59			58

OTHER INFORMATION
Total nonperforming assets (c)	$	91		$	85
Net charge-offs (c)	$	63		$	44
Annualized net charge-off ratio (c)		.35	%		.32	%
Home equity portfolio credit statistics:
Percentage of first lien positions		51	%		51	%
Weighted average loan-to-value ratios		71	%		70	%
Weighted average FICO scores		716			713
Loans 90 days past due		.22	%		.25	%
Gains on sales of education loans (d)	$	30		$	20
Average FTE staff		10,255			9,564
ATMs		3,581			3,600
Branches		774			719
Checking relationships		1,741,000			1,611,000
Consumer DDA households using online banking		711,000			593,000
% of consumer DDA households using online banking		45	%		41	%
Consumer DDA households using online bill payment		112,000			63,000
% of consumer DDA households using online bill payment		7	%		4	%
Small business deposits
Demand	$	5,611		$	4,969
Money market		2,711			2,128
Certificates of deposit		312			335

(a)	See Notes (a) and (c) on page 4.

(b)	Presented as of period-end, except for net charge-offs, annualized net charge-off ratio, home equity portfolio weighted average statistics, gains on sales of education loans, average FTE staff and small business deposits.

(c)	See Note (a) on page 25.

(d)	Included in “Other noninterest income” above.

Page 6

THE PNC FINANCIAL SERVICES GROUP, INC.

Regional Community Banking (Unaudited) (a)


*Three months ended; taxable-equivalent basis (a)* *Dollars in millions*	December 31 2004			September 30 2004			June 30 2004			March 31 2004			December 31 2003
INCOME STATEMENT
Net interest income	$	345		$	342		$	340		$	333		$	314
Noninterest income
Service charges on deposits		62			63			60			57			59
Investment products		27			27			29			29			27
Other		102			93			82			82			89

Total noninterest income		191			183			171			168			175

Total revenue		536			525			511			501			489
Provision for credit losses		14			13			6			29			14
Noninterest expense
Compensation and employee benefits		136			132			130			136			122
Net occupancy and equipment		63			66			66			68			60
Other		98			102			111			108			94

Total noninterest expense		297			300			307			312			276

Pretax earnings		225			212			198			160			199
Income taxes		82			78			73			58			72

Earnings	$	143		$	134		$	125		$	102		$	127

AVERAGE BALANCE SHEET
Loans
Consumer
Home equity	$	11,652		$	11,283		$	10,734		$	9,478		$	8,926
Indirect		881			879			836			774			510
Other consumer		464			514			533			682			474

Total consumer		12,997			12,676			12,103			10,934			9,910
Commercial		4,220			4,113			3,943			3,901			3,205
Floor plan		961			929			1,037			947			844
Residential mortgage		708			737			776			813			389
Other		26			25			24			28			22

Total loans		18,912			18,480			17,883			16,623			14,370
Goodwill		1,000			1,005			1,005			994			438
Loans held for sale		1,221			1,238			1,156			1,115			1,158
Other assets		1,443			1,447			1,587			2,060			1,312

Total assets	$	22,576		$	22,170		$	21,631		$	20,792		$	17,278

Deposits
Noninterest-bearing demand	$	6,883		$	6,712		$	6,464		$	6,248		$	5,804
Interest-bearing demand		7,098			6,937			6,916			6,916			6,596
Money market		11,937			12,112			12,465			12,356			12,140

Total transaction deposits		25,918			25,761			25,845			25,520			24,540
Savings		2,727			2,659			2,548			2,508			2,020
Certificates of deposit		9,363			8,775			8,421			8,565			8,047

Total deposits		38,008			37,195			36,814			36,593			34,607
Other liabilities		164			185			223			432			147
Capital		2,420			2,375			2,364			2,362			2,218

Total funds	$	40,592		$	39,755		$	39,401		$	39,387		$	36,972

PERFORMANCE RATIOS
Return on capital		24	%		22	%		21	%		17	%		23	%
Noninterest income to total revenue		36			35			33			34			36
Efficiency		55			57			60			62			56

OTHER INFORMATION (b)
Total nonperforming assets (c)	$	91		$	85		$	81		$	75		$	85
Net charge-offs (c)	$	11		$	10		$	10		$	32		$	12
Annualized net charge-off ratio (c)		.23	%		.22	%		.22	%		.77	%		.33	%
Home equity portfolio credit statistics:
Percentage of first lien positions		51	%		51	%		51	%		50	%		51	%
Weighted average loan-to-value ratios		71	%		71	%		71	%		72	%		70	%
Weighted average FICO scores		716			717			717			713			713
Loans 90 days past due		.22	%		.22	%		.20	%		.23	%		.25	%
Gains on sales of education loans (d)	$	13		$	15		$	2					$	8
Average FTE staff		10,109			10,251			10,254			10,379			9,589
ATMs		3,581			3,555			3,528			3,486			3,600
Branches		774			774			775			769			719
Checking relationships		1,741,000			1,732,000			1,700,000			1,679,000			1,611,000
Consumer DDA households using online banking		711,000			690,000			663,000			637,000			593,000
% of consumer DDA households using online banking		45	%		44	%		43	%		42	%		41	%
Consumer DDA households using online bill payment		112,000			108,000			112,000			102,000			63,000
% of consumer DDA households using online bill payment		7	%		7	%		7	%		7	%		4	%
Small business deposits
Demand	$	5,967		$	5,641		$	5,423		$	5,407		$	5,303
Money market		2,836			2,788			2,707			2,510			2,283
Certificates of deposit		318			304			300			324			300

(a)	See Notes (a) and (c) on page 4.

(b)	Presented as of period-end, except for net charge-offs, annualized net charge-off ratio, home equity portfolio weighted average statistics, gains on sales of education loans, average FTE staff and small business deposits.

(c)	See Note (a) on page 25.

(d)	Included in “Other noninterest income” above.

Page 7

THE PNC FINANCIAL SERVICES GROUP, INC.

Wholesale Banking (Unaudited) (a)


*Year ended; taxable-equivalent basis (a)* *Dollars in millions except as noted*	December 31 2004			December 31 2003
INCOME STATEMENT
Net interest income	$	694		$	677
Net interest income - FIN 46		4			3

Total net interest income		698			680
Noninterest income
Net commercial mortgage banking
Net gains on loan sales		50			52
Servicing and other fees, net of amortization		47			39
Net gains on institutional loans held for sale		52			69
Other - FIN 46		17			14
Other		407			428

Noninterest income		573			602

Total revenue		1,271			1,282
Provision for credit losses		5			121
Noninterest expense - FIN 46		61			36
Noninterest expense		610			598

Pretax earnings		595			527
Noncontrolling interests in income of consolidated entities		(43	)		(21	)
Income taxes		195			157

Earnings	$	443		$	391

AVERAGE BALANCE SHEET
Loans (b)
Corporate banking	$	9,865		$	9,410
Commercial real estate		1,834			1,872
Commercial - real estate related		1,631			1,404
PNC Business Credit		3,803			3,551

Total loans		17,133			16,237
Loans held for sale		470			572
Other assets		4,470			4,214

Total assets	$	22,073		$	21,023

Deposits	$	7,527		$	6,354
Commercial paper		1,889			1,232
Other liabilities		3,433			3,250
Capital		1,672			1,994

Total funds	$	14,521		$	12,830

PERFORMANCE RATIOS
Return on capital		26	%		20	%
Noninterest income to total revenue		45			47
Efficiency		53			49

COMMERCIAL MORTGAGE
SERVICING PORTFOLIO (in billions)
Beginning of period	$	83		$	74
Acquisitions/additions		41			23
Repayments/transfers		(26	)		(14	)

End of period	$	98		$	83

OTHER INFORMATION
Consolidated revenue from:
Treasury management	$	373		$	360
Capital markets	$	140		$	119
Midland Loan Services	$	108		$	96
Total loans (c)	$	17,959		$	16,441
Total nonperforming assets (c)	$	71		$	227
Net charge-offs	$	49		$	158
Average FTE staff		3,086			2,989
Net carrying amount of commercial mortgage servicing rights (c)	$	242		$	209

(a)	See Notes (a) and (c) on page 4.

(b)	Includes Market Street Funding Corporation. See Supplemental Average Balance Sheet Information on page 19.

(c)	Presented as of period-end.

Page 8

THE PNC FINANCIAL SERVICES GROUP, INC.

Wholesale Banking (Unaudited) (a)


*Three months ended* *Taxable-equivalent basis (a)* *Dollars in millions except as noted*	December 31 2004			September 30 2004			June 30 2004			March 31 2004			December 31 2003
INCOME STATEMENT
Net interest income	$	182		$	179		$	170		$	163		$	169
Net interest income - FIN 46		1			1			1			1			1

Total net interest income		183			180			171			164			170
Noninterest income
Net commercial mortgage banking
Net gains on loan sales		20			6			14			10			14
Servicing and other fees, net of amortization		12			12			12			11			9
Net gains on institutional loans held for sale		2			5			17			28			16
Other - FIN 46		5			4			4			4			8
Other		111			92			104			100			113

Noninterest income		150			119			151			153			160

Total revenue		333			299			322			317			330
Provision for credit losses		9			1			8			(13	)		9
Noninterest expense - FIN 46		16			15			15			15			17
Noninterest expense		165			151			147			147			150

Pretax earnings		143			132			152			168			154
Noncontrolling interests in income of consolidated entities		(11	)		(12	)		(10	)		(10	)		(8	)
Income taxes		46			44			49			56			45

Earnings	$	108		$	100		$	113		$	122		$	117

AVERAGE BALANCE SHEET
Loans (b)
Corporate banking	$	10,139		$	9,776		$	9,669		$	9,875		$	10,233
Commercial real estate		1,824			1,902			1,934			1,665			1,647
Commercial - real estate related		1,743			1,704			1,465			1,585			1,350
PNC Business Credit		3,976			3,838			3,788			3,608			3,658

Total loans		17,682			17,220			16,856			16,733			16,888
Loans held for sale		555			349			493			484			549
Other assets		4,514			4,010			4,640			4,630			4,574

Total assets	$	22,751		$	21,579		$	21,989		$	21,847		$	22,011

Deposits	$	8,536		$	7,882		$	6,981		$	6,694		$	6,641
Commercial paper		1,954			1,679			1,815			2,111			2,386
Other liabilities		3,395			2,944			3,583			3,725			3,707
Capital		1,590			1,586			1,659			1,854			1,942

Total funds	$	15,475		$	14,091		$	14,038		$	14,384		$	14,676

PERFORMANCE RATIOS
Return on capital		27	%		25	%		27	%		26	%		24	%
Noninterest income to total revenue		45			40			47			48			48
Efficiency		54			56			50			51			51

COMMERCIAL MORTGAGE
SERVICING PORTFOLIO (in billions)
Beginning of period	$	93		$	89		$	86		$	83		$	80
Acquisitions/additions		12			11			11			7			6
Repayments/transfers		(7	)		(7	)		(8	)		(4	)		(3	)

End of period	$	98		$	93		$	89		$	86		$	83

OTHER INFORMATION
Consolidated revenue from:
Treasury management	$	99		$	95		$	91		$	88		$	90
Capital markets	$	44		$	27		$	37		$	32		$	32
Midland Loan Services	$	27		$	30		$	26		$	25		$	23
Total loans (c)	$	17,959		$	17,650		$	17,171		$	16,728		$	16,441
Total nonperforming assets (c)	$	71		$	82		$	110		$	131		$	227
Net charge-offs	$	3					$	16		$	30		$	34
Average FTE staff		3,129			3,098			3,074			3,038			2,970
Net carrying amount of commercial mortgage servicing rights (c)	$	242		$	229		$	226		$	211		$	209

(a)	See Notes (a) and (c) on page 4.

(b)	Includes Market Street Funding Corporation. See Supplemental Average Balance Sheet Information on page 19.

(c)	Presented as of period-end.

Page 9

THE PNC FINANCIAL SERVICES GROUP, INC.

PNC Advisors (Unaudited) (a)


*Year ended; taxable-equivalent basis (a)* *Dollars in millions except as noted*	December 31 2004			December 31 2003
INCOME STATEMENT
Net interest income	$	111		$	107
Noninterest income
Investment management and trust		316			313
Brokerage		111			101
Other		91			94

Total noninterest income		518			508

Total revenue		629			615
Provision for credit losses		(1	)		3
Noninterest expense		463			472

Pretax earnings		167			140
Income taxes		61			51

Earnings	$	106		$	89

AVERAGE BALANCE SHEET
Loans
Consumer	$	1,518		$	1,317
Residential mortgage		130			244
Commercial		407			438
Other		292			287

Total loans		2,347			2,286
Other assets		408			428

Total assets	$	2,755		$	2,714

Deposits	$	2,264		$	2,141
Other liabilities		278			259
Capital		307			313

Total funds	$	2,849		$	2,713

PERFORMANCE RATIOS (e)
Return on capital		35	%		28	%
Noninterest income to total revenue		82			83

ASSETS UNDER ADMINISTRATION (in billions) (b) (c) (d)
Assets under management
Personal	$	41		$	44
Institutional		9			9

Total	$	50		$	53

Asset Type
Equity	$	30		$	31
Fixed income		14			16
Liquidity/Other		6			6

Total	$	50		$	53

Nondiscretionary assets under administration
Personal	$	29		$	22
Institutional		64			65

Total	$	93		$	87

Asset Type
Equity	$	32		$	30
Fixed income		33			30
Liquidity/Other		28			27

Total	$	93		$	87

OTHER INFORMATION (c)
Total nonperforming assets	$	9		$	11
Brokerage assets administered (in billions)	$	25		$	23
Full service brokerage offices		75			76
Financial consultants		436			445
Margin loans	$	254		$	256
Average FTE staff		2,796			2,918

(a)	See Notes (a) and (c) on page 4.

(b)	Excludes brokerage assets administered.

(c)	Presented as of period-end, except for average FTE staff.

(d)

Balances at December 31, 2004 reflect the first quarter 2004 sale of certain activities of the investment consulting business of Hawthorn and the expected reduction of approximately $5.9 billion of assets under management with approximately $4.4 billion moving to nondiscretionary assets under administration.

(e)	See page 12 for information regarding efficiency ratios.

Page 10

THE PNC FINANCIAL SERVICES GROUP, INC.

PNC Advisors (Unaudited) (a)


*Three months ended* *Taxable-equivalent basis (a)* *Dollars in millions except as noted*	December 31 2004			September 30 2004			June 30 2004			March 31 2004			December 31 2003
INCOME STATEMENT
Net interest income	$	28		$	29		$	27		$	27		$	27
Noninterest income
Investment management and trust		79			77			79			81			81
Brokerage		28			25			28			30			29
Other		19			20			20			32			22

Total noninterest income		126			122			127			143			132

Total revenue		154			151			154			170			159
Provision for credit losses		(1	)		1			(2	)		1			1
Noninterest expense		117			112			114			120			126

Pretax earnings		38			38			42			49			32
Income taxes		14			14			15			18			12

Earnings	$	24		$	24		$	27		$	31		$	20

AVERAGE BALANCE SHEET
Loans
Consumer	$	1,640		$	1,568		$	1,475		$	1,386		$	1,371
Residential mortgage		109			118			137			154			173
Commercial		384			412			417			415			415
Other		285			293			303			292			291

Total loans		2,418			2,391			2,332			2,247			2,250
Other assets		420			393			405			413			411

Total assets	$	2,838		$	2,784		$	2,737		$	2,660		$	2,661

Deposits	$	2,314		$	2,252		$	2,298		$	2,189		$	2,175
Other liabilities		299			276			272			268			262
Capital		297			305			301			325			305

Total funds	$	2,910		$	2,833		$	2,871		$	2,782		$	2,742

PERFORMANCE RATIOS (e)
Return on capital		32	%		31	%		36	%		38	%		26	%
Noninterest income to total revenue		82			81			82			84			83

ASSETS UNDER ADMINISTRATION (in billions) (b) (c) (d)
Assets under management
Personal	$	41		$	39		$	40		$	39		$	44
Institutional		9			9			9			9			9

Total	$	50		$	48		$	49		$	48		$	53

Asset Type
Equity	$	30		$	28		$	29		$	28		$	31
Fixed income		14			14			14			14			16
Liquidity/Other		6			6			6			6			6

Total	$	50		$	48		$	49		$	48		$	53

Nondiscretionary assets under administration
Personal	$	29		$	27		$	27		$	29		$	22
Institutional		64			64			64			65			65

Total	$	93		$	91		$	91		$	94		$	87

Asset Type
Equity	$	32		$	31		$	32		$	33		$	30
Fixed income		33			32			33			34			30
Liquidity/Other		28			28			26			27			27

Total	$	93		$	91		$	91		$	94		$	87

OTHER INFORMATION (c)
Total nonperforming assets	$	9		$	10		$	10		$	11		$	11
Brokerage assets administered (in billions)	$	25		$	23		$	23		$	24		$	23
Full service brokerage offices		75			75			75			76			76
Financial consultants		436			435			436			444			445
Margin loans	$	254		$	267		$	268		$	270		$	256
Average FTE staff		2,806			2,791			2,787			2,804			2,810

(a)	See Notes (a) and (c) on page 4.

(b)	Excludes brokerage assets administered.

(c)	Presented as of period-end, except for average FTE staff.

(d)

Balances for each 2004 date reflect the first quarter 2004 sale of certain activities of the investment consulting business of Hawthorn and the expected reduction of approximately $5.9 billion of assets under management with approximately $4.4 billion moving to nondiscretionary assets under administration.

(e)	See page 12 for information regarding efficiency ratios.

Page 11

THE PNC FINANCIAL SERVICES GROUP, INC.

PNC Advisors (Unaudited)

Efficiency ratios


	Quarter ended										Year ended
	December 31 2004		September 30 2004		June 30 2004		March 31 2004		December 31 2003		December 31 2004		December 31 2003
Efficiency, GAAP basis (a)	76	%	74	%	74	%	71	%	79	%	74	%	77	%
Efficiency, as adjusted (b)	68	%	66	%	64	%	61	%	72	%	65	%	69	%

(a)	Calculated as noninterest expense divided by the sum of net interest income and noninterest income.

(b)

Calculated by excluding the impact of brokerage firm activities included within the PNC Advisors business segment. Brokerage firm activities excluded are the principal activities of Hilliard Lyons on a management reporting basis, including client-related brokerage and trading, investment banking and investment management. Industry-wide efficiency measures for brokerage firms and asset management firms differ significantly due primarily to the highly variable compensation structure of brokerage firms. We believe the disclosure of an efficiency ratio for PNC Advisors excluding the impact of these brokerage firm activities is meaningful for investors as it provides a more relevant basis of comparison with other asset management firms.

Reconciliation of GAAP amounts with amounts used in the calculation of adjusted efficiency ratio:


	Quarter ended										Year ended
*Dollars in millions*	December 31 2004		September 30 2004		June 30 2004		March 31 2004		December 31 2003		December 31 2004		December 31 2003
Revenue, GAAP basis	$	154	$	151	$	154	$	170	$	159	$	629	$	615
Less: brokerage firm activities		53		47		52		55		55		207		205

Revenue, as adjusted	$	101	$	104	$	102	$	115	$	104	$	422	$	410

Noninterest expense, GAAP basis	$	117	$	112	$	114	$	120	$	126	$	463	$	472
Less: brokerage firm activities		47		44		48		50		52		188		191

Noninterest expense, as adjusted	$	70	$	68	$	66	$	70	$	74	$	275	$	281

Page 12

THE PNC FINANCIAL SERVICES GROUP, INC.

BlackRock (Unaudited) (a)


*Year ended; Taxable-equivalent basis (a)* *Dollars in millions except as noted*	December 31 2004			December 31 2003
INCOME STATEMENT
Investment advisory and administration fees	$	633		$	529
Other income		92			69

Total revenue		725			598
Operating expense		423			336
Operating expense - LTIP charges		104
Fund administration and servicing costs		32			33

Total expense		559			369

Operating income		166			229
Nonoperating income		36			22

Pretax earnings		202			251
Minority interest		5
Income taxes		54			96

Earnings	$	143		$	155

PERIOD-END BALANCE SHEET
Goodwill and other intangible assets	$	184		$	192
Other assets		961			775

Total assets	$	1,145		$	967

Liabilities and minority interest	$	377		$	254
Stockholders’ equity		768			713

Total liabilities and stockholders’ equity	$	1,145		$	967

PERFORMANCE DATA
Return on average equity		19	%		23	%
Operating margin (b)		37			41
Diluted earnings per share	$	2.17		$	2.36

ASSETS UNDER MANAGEMENT (in billions) (period end)
Separate accounts
Fixed income	$	216		$	190
Liquidity		7			6
Liquidity - securities lending		7			10
Equity		10			9
Alternative investment products		8			7

Total separate accounts		248			222
Mutual funds (c)
Fixed income		25			24
Liquidity		64			59
Equity		5			4

Total mutual funds		94			87

Total assets under management	$	342		$	309

OTHER INFORMATION
Average FTE staff		1,014			962
(a) See Notes (a) and (c) on page 4. (b) Calculated as operating income, adjusted for the LTIP charges and appreciation on Rabbi trust assets related to BlackRock’s deferred compensation plans, divided by total revenue less fund administration and servicing costs. The following is a reconciliation of this presentation to operating margin calculated on a GAAP basis (operating income divided by total revenue) in millions:
Operating income, GAAP basis	$	166		$	229
Add back: LTIP charges		104
Less: portion of LTIP to be funded by BlackRock		(19	)
Add back: appreciation on Rabbi trust assets		4			2

Operating income, as adjusted	$	255		$	231

Total revenue, GAAP basis	$	725		$	598
Less: fund administration and servicing costs		32			33

Revenue used for operating margin calculation, as reported	$	693		$	565

Operating margin, GAAP basis		23	%		38	%
Operating margin, as reported		37	%		41	%

We believe that operating margin, as reported, is a more relevant indicator of management’s ability to effectively employ BlackRock’s resources. The portion of the LTIP charges associated with awards to be met with the contribution of shares of BlackRock stock by PNC has been excluded from operating income because, exclusive of impact related to LTIP participants’ option to put awarded shares to BlackRock, this non-cash charge will not impact BlackRock’s book value. Appreciation on Rabbi trust assets related to BlackRock’s deferred compensation plans has been excluded because investment performance of these assets has a nominal impact on net income. We have excluded fund administration and servicing costs from the operating margin calculation because these costs are a fixed, asset-based expense which can fluctuate based on the discretion of a third party.

(c)	Includes BlackRock Funds, BlackRock Liquidity Funds, BlackRock Closed End Funds, Short Term Investment Fund and BlackRock Global Series Funds.

Page 13

THE PNC FINANCIAL SERVICES GROUP, INC.

BlackRock (Unaudited) (a)


*Three months ended* *Taxable-equivalent basis (a)* *Dollars in millions except as noted*	December 31 2004			September 30 2004			June 30 2004			March 31 2004			December 31 2003
INCOME STATEMENT
Investment advisory and administration fees	$	163		$	148		$	162		$	160		$	141
Other income		25			23			22			22			20

Total revenue		188			171			184			182			161
Operating expense		112			94			113			104			90
Operating expense - LTIP charge		13			91
Fund administration and servicing costs		7			9			8			8			9

Total expense		132			194			121			112			99

Operating income (loss)		56			(23	)		63			70			62
Nonoperating income		8			7			15			6			5

Pretax earnings (loss)		64			(16	)		78			76			67
Minority interest		1						4
Income taxes		13			(6	)		26			21			26

Earnings (loss)	$	50		$	(10	)	$	48		$	55		$	41

PERIOD-END BALANCE SHEET
Goodwill and other intangible assets	$	184		$	184		$	186		$	186		$	192
Other assets		961			893			780			723			775

Total assets	$	1,145		$	1,077		$	966		$	909		$	967

Liabilities and minority interest	$	377		$	342		$	211		$	186		$	254
Stockholders’ equity		768			735			755			723			713

Total liabilities and stockholders’ equity	$	1,145		$	1,077		$	966		$	909		$	967

PERFORMANCE DATA
Return on average equity		26	%		(5	)%		26	%		31	%		23	%
Operating margin (b)		38			32			36			40			41
Diluted earnings (loss) per share	$	.75		$	(.15	)	$	.73		$	.84		$	.63

ASSETS UNDER MANAGEMENT (in billions) (period end)
Separate accounts
Fixed income	$	216		$	211		$	200		$	202		$	190
Liquidity		7			8			7			6			6
Liquidity - securities lending		7			9			9			9			10
Equity		10			8			9			9			9
Alternative investment products		8			7			6			6			7

Total separate accounts		248			243			231			232			222
Mutual funds (c)
Fixed income		25			24			24			25			24
Liquidity		64			51			50			59			59
Equity		5			5			5			5			4

Total mutual funds		94			80			79			89			87

Total assets under management	$	342		$	323		$	310		$	321		$	309

OTHER INFORMATION
Average FTE staff		1,062			1,063			984			947			991
(a) See Notes (a) and (c) on page 4. (b) Calculated as operating income, adjusted for the LTIP charges and appreciation on Rabbi trust assets related to BlackRock’s deferred compensation plans, divided by total revenue less fund administration and servicing costs. The following is a reconciliation of this presentation to operating margin calculated on a GAAP basis (operating income divided by total revenue) in millions:
Operating income (loss), GAAP basis	$	56		$	(23	)	$	63		$	70		$	62
Add back: LTIP charges		13			91
Less: portion of LTIP to be funded by BlackRock		(2	)		(17	)
Add back: appreciation on Rabbi trust assets		2						1			1

Operating income, as adjusted	$	69		$	51		$	64		$	71		$	62

Total revenue, GAAP basis	$	188		$	171		$	184		$	182		$	161
Less: fund administration and servicing costs		7			9			8			8			9

Revenue used for operating margin calculation, as reported	$	181		$	162		$	176		$	174		$	152

Operating margin, GAAP basis		30	%		(13	)%		34	%		38	%		38	%
Operating margin, as reported		38	%		32	%		36	%		40	%		41	%

(c)	Includes BlackRock Funds, BlackRock Liquidity Funds, BlackRock Closed End Funds, Short Term Investment Fund and BlackRock Global Series Funds.

Page 14

THE PNC FINANCIAL SERVICES GROUP, INC.

PFPC (Unaudited) (a)


*Year ended* *Dollars in millions except as noted*	December 31 2004			December 31 2003
INCOME STATEMENT
Fund servicing revenue	$	814		$	762
Operating expense		643			618
Amortization (accretion) of other intangibles, net		3			(18	)

Operating income		168			162
Nonoperating income (b)		3			14
Debt financing		54			69

Pretax earnings		117			107
Income taxes		47			43

Earnings	$	70		$	64

AVERAGE BALANCE SHEET
Goodwill and other intangible assets	$	1,022		$	1,037
Other assets		1,032			872

Total assets	$	2,054		$	1,909

Debt financing	$	1,117		$	1,279
Other liabilities, net		675			336
Capital		262			294

Total funds	$	2,054		$	1,909

PERFORMANCE RATIOS
Return on capital		27	%		22	%
Operating margin (c)		21			21

SERVICING STATISTICS (d)
Accounting/administration net fund assets (in billions)
Domestic	$	660		$	609
Foreign (e)		61			45

Total	$	721		$	654

Asset type (in billions)
Money market	$	341		$	341
Equity		230			186
Fixed income		101			90
Other		49			37

Total	$	721		$	654

Custody fund assets (in billions)	$	451		$	401

Shareholder accounts (in millions)
Transfer agency		21			21
Subaccounting		36			32

Total		57			53

OTHER INFORMATION
Average FTE staff		4,749			5,081

(a)	See Note (a) on page 4.

(b)	Net of nonoperating expense.

(c)	Operating income divided by total fund servicing revenue.

(d)	Presented as of period-end.

(e)	Represents net assets serviced offshore.

Page 15

THE PNC FINANCIAL SERVICES GROUP, INC.

PFPC (Unaudited) (a)


*Three months ended* *Dollars in millions except as noted*	December 31 2004			September 30 2004			June 30 2004			March 31 2004			December 31 2003
INCOME STATEMENT
Fund servicing revenue	$	209		$	203		$	199		$	203		$	194
Operating expense		160			158			158			167			155
Amortization (accretion) of other intangibles, net		4			3			(1	)		(3	)		(4	)

Operating income		45			42			42			39			43
Nonoperating income (b)					1						2			3
Debt financing		12			14			14			14			16

Pretax earnings		33			29			28			27			30
Income taxes		13			12			11			11			12

Earnings	$	20		$	17		$	17		$	16		$	18

AVERAGE BALANCE SHEET
Goodwill and other intangible assets	$	1,017		$	1,021		$	1,024		$	1,027		$	1,034
Other assets		1,069			1,052			1,054			952			949

Total assets	$	2,086		$	2,073		$	2,078		$	1,979		$	1,983

Debt financing	$	1,067		$	1,102		$	1,137		$	1,163		$	1,248
Other liabilities, net		756			711			681			550			467
Capital		263			260			260			266			268

Total funds	$	2,086		$	2,073		$	2,078		$	1,979		$	1,983

PERFORMANCE RATIOS
Return on capital		30	%		26	%		26	%		23	%		27	%
Operating margin (c)		22			21			21			19			22

SERVICING STATISTICS (d)
Accounting/administration net fund assets (in billions)
Domestic	$	660		$	609		$	612		$	621		$	609
Foreign (e)		61			58			53			48			45

Total	$	721		$	667		$	665		$	669		$	654

Asset type (in billions)
Money market	$	341		$	322		$	326		$	337		$	341
Equity		230			203			200			198			186
Fixed income		101			97			94			95			90
Other		49			45			45			39			37

Total	$	721		$	667		$	665		$	669		$	654

Custody fund assets (in billions)	$	451		$	418		$	416		$	411		$	401

Shareholder accounts (in millions)
Transfer agency		21			21			21			22			21
Subaccounting		36			34			34			33			32

Total		57			55			55			55			53

OTHER INFORMATION
Average FTE staff		4,659			4,614			4,816			4,910			4,801

(a)	See Note (a) on page 4.

(b)	Net of nonoperating expense.

(c)	Operating income divided by total fund servicing revenue.

(d)	Presented as of period-end.

(e)	Represents net assets serviced offshore.

Page 16

THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Net Interest Income, Net Interest Margin and Trading Revenue (Unaudited)

Taxable-equivalent basis


Net Interest Income *In millions*	Quarter ended															Year ended
Net Interest Income *In millions*	December 31 2004			September 30 2004			June 30 2004			March 31 2004			December 31 2003			December 31 2004			December 31 2003
Interest income
Loans and fees on loans	$	549		$	518		$	491		$	492		$	474		$	2,050		$	1,970
Securities		155			141			131			146			142			573			583
Other		45			33			40			31			47			149			169

Total interest income		749			692			662			669			663			2,772			2,722

Interest expense
Deposits		152			121			107			104			102			484			457
Borrowed funds		88			73			70			68			73			299			259

Total interest expense		240			194			177			172			175			783			716

Net interest income (a)	$	509		$	498		$	485		$	497		$	488		$	1,989		$	2,006


	Quarter ended															Year ended
Net Interest Margin	December 31 2004			September 30 2004			June 30 2004			March 31 2004			December 31 2003			December 31 2004			December 31 2003
Average yields/rates
Yield on earning assets
Loans and fees on loans		5.04	%		4.89	%		4.89	%		5.05	%		5.08	%		5.01	%		5.48	%
Securities		3.85			3.67			3.33			3.57			3.65			3.61			3.97
Other		3.25			2.89			3.07			2.54			3.94			2.98			3.69
Total yield on earning assets		4.59			4.44			4.34			4.44			4.60			4.48			4.93
Rate on interest-bearing liabilities
Deposits		1.52			1.27			1.15			1.16			1.20			1.28			1.35
Borrowed funds		2.76			2.45			2.21			2.07			2.31			2.39			2.47
Total rate on interest-bearing liabilities		1.82			1.55			1.42			1.40			1.50			1.56			1.62

Interest rate spread		2.77			2.89			2.92			3.04			3.10			2.92			3.31
Impact of noninterest-bearing sources		.35			.30			.26			.26			.28			.30			.33

Net interest margin		3.12	%		3.19	%		3.18	%		3.30	%		3.38	%		3.22	%		3.64	%


	Quarter ended															Year ended
Trading Revenue *In millions*	December 31 2004			September 30 2004			June 30 2004			March 31 2004			December 31 2003			December 31 2004			December 31 2003
Net interest income (expense)	$	4		$	3		$	4		$	2		$	1		$	13		$	(2	)
Other noninterest income		44			16			30			23			28			113			127

Total trading revenue	$	48		$	19		$	34		$	25		$	29		$	126		$	125

Securities underwriting and trading	$	23		$	11		$	16		$	10		$	19		$	60		$	82
Foreign exchange		9			8			7			7			6			31			25
Financial derivatives		16						11			8			4			35			18

Total trading revenue	$	48		$	19		$	34		$	25		$	29		$	126		$	125

(a) The following is a reconciliation of net interest income as reported in the Consolidated Statement of Income to net interest income on a taxable-equivalent basis:

	Quarter ended															Year ended
*In millions*	December 31 2004			September 30 2004			June 30 2004			March 31 2004			December 31 2003			December 31 2004			December 31 2003
Net interest income, GAAP basis	$	503		$	491		$	481		$	494		$	485		$	1,969		$	1,996
Taxable-equivalent adjustment		6			7			4			3			3			20			10

Net interest income, taxable-equivalent basis	$	509		$	498		$	485		$	497		$	488		$	1,989		$	2,006

Page 17

THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Noninterest Income and Noninterest Expense (Unaudited)

In millions


	Quarter ended															Year ended
Noninterest Income	December 31 2004			September 30 2004			June 30 2004			March 31 2004			December 31 2003			December 31 2004			December 31 2003

Asset management	$	254		$	238		$	250		$	252		$	229		$	994		$	861
Fund servicing		209			204			200			204			193			817			762
Service charges on deposits		65			65			63			59			62			252			239
Brokerage		53			52			56			58			51			219			184
Consumer services		68			66			67			63			63			264			251
Corporate services		120			100			128			125			123			473			485
Equity management gains (losses)		9			16			35			7						67			(25	)
Net securities gains		10			16			14			15			15			55			116
Other		116			81			97			128			125			422			384

Total noninterest income	$	904		$	838		$	910		$	911		$	861		$	3,563		$	3,257

Included in “Corporate services” above
Net gains on institutional loans held for sale	$	2		$	5		$	17		$	28		$	16		$	52		$	69
Net gains on sales of commercial mortgages	$	20		$	6		$	14		$	10		$	14		$	50		$	52

Included in “Other” above (a)
Gains on sales of education loans	$	13		$	15		$	2					$	8		$	30		$	20

Noninterest income to total revenue (b)		64	%		63	%		65	%		65	%		64	%		64	%		62	%

	Quarter ended															Year ended
Noninterest Expense	December 31 2004			September 30 2004			June 30 2004			March 31 2004			December 31 2003			December 31 2004			December 31 2003

Compensation	$	452		$	500		$	414		$	389		$	389		$	1,755		$	1,480
Employee benefits		82			76			77			74			83			309			324
Net occupancy		64			68			67			68			65			267			282
Equipment		74			72			70			74			71			290			276
Marketing		24			19			24			20			15			87			64
Other		253			246			258			270			235			1,027			1,050

Total noninterest expense (c)	$	949		$	981		$	910		$	895		$	858		$	3,735		$	3,476

Included in “Other” above (d)
Costs incurred, including legal fees, in connection with agreement with the U.S. Department of Justice																			$	120

Efficiency
Efficiency (e)		67	%		74	%		65	%		64	%		64	%		68	%		66	%

Bank efficiency (f)		64	%		65	%		63	%		60	%		61	%		63	%		64	%

(a)	“Other” also includes the “Other noninterest income” component of trading revenue. See page 17.

(b)

Calculated as total noninterest income divided by the sum of net interest income and noninterest income. The ratio presented for the quarter ended December 31, 2003 and full year 2003 excludes the impact of revenue included in the cumulative effect of an accounting adjustment. We consider this to be a more meaningful comparison with the other periods presented. If the additional revenue included in the cumulative effect of an accounting adjustment had been included in the computation, the ratio would have been 62% for both the quarter and year ended December 31, 2003.

(c)

The quarters ended September 30, 2004 and December 31, 2004 included $96 million and $14 million, respectively, of charges related to the BlackRock LTIP. See the Current Reports on Form 8-K dated October 6, 2004 filed by us and BlackRock for further information. Third quarter 2004 charges are comprised of $89 million of compensation expense, $2 million of employee benefits expense and $5 million of “Other” noninterest expense. Fourth quarter 2004 charges are comprised of $13 million of compensation expense and $1 million of “Other” noninterest expense.

(d)	See “Agreement with Department of Justice” in the Financial Review section of our Quarterly Report on Form 10-Q for the second quarter of 2003 and our Current Report on Form 8-K dated June 23, 2004 for further information.

(e)	Calculated as noninterest expense divided by the sum of net interest income and noninterest income.

The ratios presented for the quarter ended December 31, 2003 and full year 2003 exclude the impact of revenue and expense included in the cumulative effect of an accounting adjustment, recorded in fourth quarter 2003, as we consider this to be a more meaningful comparison with the other periods presented. If the additional revenue and expense included in the cumulative effect of an accounting adjustment had been included in the computations, the ratios would have been 66% for the quarter ended December 31, 2003 and 67% for the year ended December 31, 2003.

(f)	The bank efficiency ratio represents the consolidated efficiency ratio excluding the effect of BlackRock and PFPC.

Page 18

THE PNC FINANCIAL SERVICES GROUP, INC.

Average Consolidated Balance Sheet (Unaudited)


*Year ended - in millions*	December 31 2004			December 31 2003
Assets
Interest-earning assets
Securities
Securities available for sale
U.S. Treasury and government agencies/corporations	$	6,567		$	4,358
Other debt		8,857			9,754
State and municipal		220			112
Corporate stocks and other		232			432

Total securities available for sale		15,876			14,656
Securities held to maturity		2			18

Total securities		15,878			14,674
Loans, net of unearned income
Commercial		16,627			15,336
Commercial real estate		2,137			2,072
Consumer		14,165			10,807
Residential mortgage		4,040			3,148
Lease financing		3,470			4,110
Other		506			444

Total loans, net of unearned income		40,945			35,917
Loans held for sale		1,636			1,664
Federal funds sold and resale agreements		1,670			1,954
Other		1,692			963

Total interest-earning assets		61,821			55,172
Noninterest-earning assets
Allowance for loan and lease losses		(608	)		(668	)
Cash and due from banks		2,895			2,734
Other assets		11,158			10,041

Total assets	$	75,266		$	67,279

Supplemental Average Balance Sheet Information
Loans excluding conduit	$	39,058		$	34,687
Market Street Funding Corporation conduit		1,887			1,230

Total loans	$	40,945		$	35,917

Page 19

THE PNC FINANCIAL SERVICES GROUP, INC.

Average Consolidated Balance Sheet (Unaudited) (Continued)


*Year ended - in millions*	December 31 2004		December 31 2003
Liabilities, Minority and Noncontrolling Interests, Capital Securities and Shareholders’ Equity
Interest-bearing liabilities
Interest-bearing deposits
Money market	$	15,964	$	15,163
Demand		7,902		7,197
Savings		2,684		2,106
Retail certificates of deposit		9,075		8,810
Other time		686		266
Time deposits in foreign offices		1,371		283

Total interest-bearing deposits		37,682		33,825
Borrowed funds
Federal funds purchased		1,957		904
Repurchase agreements		1,433		1,110
Bank notes and senior debt		2,687		3,364
Subordinated debt		3,506		2,510
Commercial paper		1,887		1,232
Other borrowed funds		1,045		1,371

Total borrowed funds		12,515		10,491

Total interest-bearing liabilities		50,197		44,316
Noninterest-bearing liabilities, minority and noncontrolling interests, capital securities and shareholders’ equity
Demand and other noninterest-bearing deposits		12,015		10,637
Allowance for unfunded loan commitments and letters of credit		90		82
Accrued expenses and other liabilities		5,389		4,855
Minority and noncontrolling interests in consolidated entities		455		317
Mandatorily redeemable capital securities of subsidiary trusts				421
Shareholders’ equity		7,120		6,651

Total liabilities, minority and noncontrolling interests, capital securities and shareholders’ equity	$	75,266	$	67,279

Supplemental Average Balance Sheet Information
Interest-bearing deposits	$	37,682	$	33,825
Demand and other noninterest-bearing deposits		12,015		10,637

Total deposits	$	49,697	$	44,462

Transaction deposits	$	35,881	$	32,997

Common shareholders’ equity	$	7,112	$	6,642

Page 20

THE PNC FINANCIAL SERVICES GROUP, INC.

Average Consolidated Balance Sheet (Unaudited)


*Three months ended - in millions*	December 31 2004			September 30 2004			June 30 2004			March 31 2004			December 31 2003
Assets
Interest-earning assets
Securities
Securities available for sale
U.S. Treasury and government agencies/corporations	$	6,895		$	6,288		$	6,654		$	6,432		$	5,929
Other debt		8,846			8,667			8,624			9,293			9,154
State and municipal		175			216			225			264			149
Corporate stocks and other		188			201			259			282			383

Total securities available for sale		16,104			15,372			15,762			16,271			15,615
Securities held to maturity		1			2			2			2			2

Total securities		16,105			15,374			15,764			16,273			15,617
Loans, net of unearned income
Commercial		17,312			16,915			16,445			15,827			15,514
Commercial real estate		2,080			2,120			2,100			2,249			1,825
Consumer		15,280			14,673			13,968			12,719			11,692
Residential mortgage		4,683			4,354			3,622			3,492			2,932
Lease financing		3,216			3,182			3,437			4,050			4,252
Other		502			507			497			517			522

Total loans, net of unearned income		43,073			41,751			40,069			38,854			36,737
Loans held for sale		1,771			1,578			1,636			1,560			1,645
Federal funds sold and resale agreements		1,274			1,283			1,896			2,235			2,009
Other		2,302			1,746			1,551			1,162			1,084

Total interest-earning assets		64,525			61,732			60,916			60,084			57,092
Noninterest-earning assets
Allowance for loan and lease losses		(582	)		(593	)		(603	)		(653	)		(645	)
Cash and due from banks		3,038			2,851			2,793			2,895			2,774
Other assets		11,791			11,372			10,762			10,697			9,873

Total assets	$	78,772		$	75,362		$	73,868		$	73,023		$	69,094

Supplemental Average Balance Sheet Information
Loans excluding conduit	$	41,121		$	40,074		$	38,257		$	36,747		$	34,352
Market Street Funding Corporation conduit		1,952			1,677			1,812			2,107			2,385

Total loans	$	43,073		$	41,751		$	40,069		$	38,854		$	36,737

Page 21

THE PNC FINANCIAL SERVICES GROUP, INC.

Average Consolidated Balance Sheet (Unaudited) (Continued)


*Three months ended - in millions*	December 31 2004		September 30 2004		June 30 2004		March 31 2004		December 31 2003
Liabilities, Minority and Noncontrolling Interests and Shareholders’ Equity
Interest-bearing liabilities
Interest-bearing deposits
Money market	$	16,328	$	15,916	$	16,027	$	15,581	$	15,249
Demand		7,999		7,857		7,878		7,873		7,496
Savings		2,819		2,730		2,595		2,590		2,099
Retail certificates of deposit		9,761		9,100		8,650		8,780		8,268
Other time		892		825		680		343		265
Time deposits in foreign offices		1,628		1,561		1,485		806		466

Total interest-bearing deposits		39,427		37,989		37,315		35,973		33,843
Borrowed funds
Federal funds purchased		1,676		1,940		2,303		1,912		1,558
Repurchase agreements		1,906		1,158		1,508		1,157		1,226
Bank notes and senior debt		2,535		2,709		2,752		2,752		2,752
Subordinated debt		3,476		3,411		3,545		3,593		3,056
Commercial paper		1,947		1,679		1,815		2,111		2,388
Other borrowed funds		1,070		858		633		1,622		1,425

Total borrowed funds		12,610		11,755		12,556		13,147		12,405

Total interest-bearing liabilities		52,037		49,744		49,871		49,120		46,248
Noninterest-bearing liabilities, minority and noncontrolling interests and shareholders’ equity
Demand and other noninterest-bearing deposits		12,539		12,477		11,681		11,350		11,070
Allowance for unfunded loan commitments and letters of credit		96		84		90		90		88
Accrued expenses and other liabilities		6,283		5,470		4,773		5,020		4,688
Minority and noncontrolling interests in consolidated entities		501		466		419		434		471
Shareholders’ equity		7,316		7,121		7,034		7,009		6,529

Total liabilities, minority and noncontrolling interests, and shareholders’ equity	$	78,772	$	75,362	$	73,868	$	73,023	$	69,094

Supplemental Average Balance Sheet Information
Interest-bearing deposits	$	39,427	$	37,989	$	37,315	$	35,973	$	33,843
Demand and other noninterest-bearing deposits		12,539		12,477		11,681		11,350		11,070

Total deposits	$	51,966	$	50,466	$	48,996	$	47,323	$	44,913

Transaction deposits	$	36,866	$	36,250	$	35,586	$	34,804	$	33,815

Common shareholders’ equity	$	7,308	$	7,113	$	7,026	$	7,000	$	6,520

Page 22

THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Loans and Lending Statistics (Unaudited)

Loans


*Period ended-dollars in millions*	December 31 2004			September 30 2004			June 30 2004			March 31 2004			December 31 2003
Commercial
Retail/wholesale	$	5,095		$	4,855		$	4,734		$	4,528		$	4,327
Manufacturing		4,092			4,033			4,050			3,917			3,786
Service providers		2,201			2,047			1,982			2,044			1,867
Real estate related		1,762			1,706			1,616			1,432			1,303
Financial services		1,129			1,214			1,268			1,157			1,169
Health care		503			473			470			448			403
Communications		62			98			105			78			93
Other		2,594			2,689			2,488			2,397			2,134

Total commercial		17,438			17,115			16,713			16,001			15,082

Commercial real estate
Real estate projects		1,460			1,513			1,530			1,521			1,392
Mortgage		520			527			575			534			432

Total commercial real estate		1,980			2,040			2,105			2,055			1,824

Consumer
Home equity		12,734			12,377			11,946			11,160			9,790
Automobile		836			842			825			762			585
Other		2,036			1,684			1,676			1,597			1,480

Total consumer		15,606			14,903			14,447			13,519			11,855

Residential mortgage		4,772			4,672			3,906			3,537			2,886
Lease financing
Equipment		3,907			3,949			3,818			3,859			3,935
Vehicles		189			228			285			968			1,212

Total lease financing		4,096			4,177			4,103			4,827			5,147

Other		505			504			484			492			518
Unearned income		(902	)		(931	)		(923	)		(980	)		(1,009	)

Total, net of unearned income	$	43,495		$	42,480		$	40,835		$	39,451		$	36,303

Supplemental Loan Information
Loans excluding conduit	$	41,243		$	40,676		$	39,094		$	37,519		$	34,080
Market Street Funding Corporation conduit		2,252			1,804			1,741			1,932			2,223

Total loans	$	43,495		$	42,480		$	40,835		$	39,451		$	36,303

Wholesale Banking Lending Statistics (a)
Portfolio composition-total exposure
Investment grade equivalent or better		52	%		53	%		53	%		53	%		52	%
Non-investment grade (secured lending)		24			24			24			24			25
Non-investment grade (other)		24			23			23			23			23

Total		100	%		100	%		100	%		100	%		100	%

Client relationships >$50 million-total exposure	$	13,695		$	12,986		$	12,596		$	12,000		$	12,396
Client relationships >$50 million-customers		151			148			140			134			138

Consumer Loan Statistic (b)
Net charge-offs to average loans		.16	%		.19	%		.20	%		.21	%		.27	%

(a)	Includes amounts for customers of Market Street Funding Corporation.

(b)	Includes consumer, residential mortgage and vehicle leasing. During the second quarter of 2004, we sold our consumer vehicle leasing business.

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THE PNC FINANCIAL SERVICES GROUP, INC.

Allowances for Loan and Lease Losses and Unfunded Loan Commitments and Letters of Credit and Net Unfunded Commitments (Unaudited)

Change in Allowance for Loan and Lease Losses


*Three months ended - in millions*	December 31 2004			September 30 2004			June 30 2004			March 31 2004			December 31 2003
Beginning balance	$	581		$	593		$	604		$	632		$	648
Charge-offs
Commercial		(15	)		(13	)		(26	)		(59	)		(53	)
Commercial real estate											(2	)
Consumer		(11	)		(10	)		(11	)		(11	)		(10	)
Residential mortgage					(2	)					(1	)		(2	)
Lease financing		(1	)		(1	)		(1	)		(2	)		(4	)

Total charge-offs (a)		(27	)		(26	)		(38	)		(75	)		(69	)
Recoveries
Commercial		9			9			5			8			15
Commercial real estate								1						1
Consumer		3			3			3			3			3
Residential mortgage											1
Lease financing		1			1			3			1			1

Total recoveries		13			13			12			13			20
Net charge-offs
Commercial		(6	)		(4	)		(21	)		(51	)		(38	)
Commercial real estate								1			(2	)		1
Consumer		(8	)		(7	)		(8	)		(8	)		(7	)
Residential mortgage					(2	)								(2	)
Lease financing								2			(1	)		(3	)

Total net charge-offs		(14	)		(13	)		(26	)		(62	)		(49	)
Provision for credit losses		19			13			8			12			34
Acquired allowance (United National)											22

Net change in allowance for unfunded loan commitments and letters of credit		21			(12	)		7						(1	)

Ending balance	$	607		$	581		$	593		$	604		$	632


Change in Allowance for Unfunded Loan Commitments and Letters of Credit
*Three months ended - in millions*	December 31 2004			September 30 2004			June 30 2004			March 31 2004			December 31 2003
Beginning balance	$	96		$	84		$	91		$	91		$	90
Net change in allowance for unfunded loan commitments and letters of credit		(21	)		12			(7	)					1

Ending balance	$	75		$	96		$	84		$	91		$	91


Net Unfunded Commitments
*In millions-period ended*	December 31 2004			September 30 2004			June 30 2004			March 31 2004			December 31 2003
Net unfunded commitments	$	29,346		$	27,972		$	27,587		$	26,356		$	25,183

(a)	See Note (a) on page 25.

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THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Nonperforming Assets (Unaudited)

Nonperforming Assets by Type


*Period ended - in millions*	December 31 2004			September 30 2004			June 30 2004			March 31 2004			December 31 2003
Nonaccrual loans
Commercial (a)	$	89		$	96		$	119		$	132		$	213
Commercial real estate		14			10			3			3			6
Consumer		11			12			11			10			11
Residential mortgage		21			23			23			26			24
Lease financing		5			7			13			12			11

Total nonaccrual loans		140			148			169			183			265
Troubled debt restructured loan		3												1

Total nonperforming loans		143			148			169			183			266
Nonperforming loans held for sale (b)		3			2			4			4			27
Foreclosed and other assets
Lease financing		14			16			17			17			17
Residential mortgage		10			11			11			13			9
Other		5			7			8			12			9

Total foreclosed and other assets		29			34			36			42			35

Total nonperforming assets (c)	$	175		$	184		$	209		$	229		$	328

Nonperforming loans to total loans		.33	%		.35	%		.41	%		.46	%		.73	%
Nonperforming assets to total loans, loans held for sale and foreclosed assets		.39			.42			.49			.56			.87
Nonperforming assets to total assets		.22			.24			.29			.31			.48

(a) During the first quarter of 2004, we changed our policy for recognizing charge-offs on smaller nonperforming commercial loans. This change resulted in the recognition of an additional $24 million of gross charge-offs for the first quarter of 2004.

(b) Includes troubled debt restructured loans held for sale.	$	2		$	2		$	2		$	3		$	10

(c) Excludes equity management assets carried at estimated fair value (December 31, 2004, September 30, 2004, June 30, 2004, March 31, 2004 and December 31, 2003 amounts include troubled debt restructured assets of $11 million, $10 million, $10 million, $11 million and $5 million, respectively).	$	32		$	29		$	32		$	29		$	37


Change in Nonperforming Assets
*December 31, 2004 - in millions*	Three months ended			Year ended
Beginning of period	$	184		$	328
Purchases (United National)					12
Transferred from accrual		43			213
Returned to performing		(3	)		(17	)
Principal reductions and payoffs		(25	)		(211	)
Asset sales		(7	)		(60	)
Charge-offs and valuation adjustments		(17	)		(90	)

December 31	$	175		$	175

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THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Nonperforming Assets (Unaudited) (Continued)

Nonperforming Assets by Business


*Period ended - in millions*	December 31 2004		September 30 2004		June 30 2004		March 31 2004		December 31 2003
Regional Community Banking
Nonperforming loans	$	80	$	74	$	70	$	64	$	74
Foreclosed and other assets		11		11		11		11		11

Total	$	91	$	85	$	81	$	75	$	85

Wholesale Banking
Nonperforming loans	$	51	$	60	$	85	$	102	$	177
Nonperforming loans held for sale		3		2		4		4		27
Foreclosed and other assets		17		20		21		25		23

Total	$	71	$	82	$	110	$	131	$	227

PNC Advisors
Nonperforming loans	$	9	$	10	$	9	$	11	$	11
Foreclosed and other assets						1

Total	$	9	$	10	$	10	$	11	$	11

Other (a)
Nonperforming loans	$	3	$	4	$	5	$	6	$	4
Foreclosed and other assets		1		3		3		6		1

Total	$	4	$	7	$	8	$	12	$	5

Consolidated Totals
Nonperforming loans (b)	$	143	$	148	$	169	$	183	$	266
Nonperforming loans held for sale		3		2		4		4		27
Foreclosed and other assets		29		34		36		42		35

Total	$	175	$	184	$	209	$	229	$	328

Largest Nonperforming Loans at December 31, 2004 - in millions (c)


Ranking	Outstandings		Industry
1	$	14	Air Transportation
2		11	Fabricated Metal Manufacturing
3		7	Individuals
4		7	Real Estate Lessors
5		5	Plastic and Mineral Manufacturing
6		4	Machinery Manufacturing
7		3	Other Transportation
8		3	Plastic and Mineral Manufacturing
9		3	Paper and Wood Product Manufacturing
10		3	Construction

Total	$	60

As a percent of nonperforming assets 34.3 %

(a)	Represents residential mortgages related to PNC’s asset and liability management function.

(b)	See Note (a) on page 25.

(c)	Amounts shown are not net of related allowance for loan and lease losses, if applicable.

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Glossary of Terms

Accounting/administration net fund assets - Net domestic and foreign fund investment assets for which we provide accounting and administration services. We do not include these assets on our Consolidated Balance Sheet.

Adjusted average total assets - Primarily comprised of total average quarterly (or annual) assets plus (less) unrealized losses (gains) on available-for-sale debt securities, less goodwill and certain other intangible assets.

Annualized - Adjusted to reflect a full year of activity.

Assets under management - Assets over which we have sole or shared investment authority for our customers/clients. We do not include these assets on our Consolidated Balance Sheet.

Capital - Represents the amount of resources that a business segment should hold to guard against potentially large losses that could cause insolvency. It is based on a measurement of economic risk, as opposed to risk as defined by regulatory bodies or generally accepted accounting principles. The economic capital measurement process involves converting a risk distribution to the capital that is required to support the risk, consistent with an institution’s target credit rating. As such, economic risk serves as a “common currency” of risk that allows an institution to compare different risks on a similar basis.

Charge-off - Process of removing a loan or portion of a loan from a bank’s balance sheet because the loan is considered uncollectible. A charge-off also is recorded when a loan is transferred to held for sale and the loan’s market value is less than its carrying amount.

Common shareholders’ equity to total assets - Common shareholders’ equity divided by total assets. Common shareholders’ equity equals total shareholders’ equity less preferred stock and the portion of capital surplus and retained interest related to the preferred stock.

Custody assets - All investment assets held on behalf of clients under safekeeping arrangements. We do not include these assets on our Consolidated Balance Sheet. Investment assets held in custody at other institutions on our behalf are included in the appropriate asset categories on the Consolidated Balance Sheet as if physically held by us.

Earning assets - Assets that generate income, which include: short-term investments; loans held for sale; loans, net of unearned income; securities; federal funds sold and resale agreements; and certain other assets.

Economic value of equity (“EVE”) - The present value of the expected cash flows of our existing assets less the present value of the expected cash flows of our existing liabilities, plus the present value of the net cash flows of our existing off-balance sheet positions.

Effective duration – A measurement, expressed in years, that, when multiplied by a change in interest rates, would approximate the percentage change in value of on- and off-balance sheet positions.

Efficiency - Noninterest expense divided by the sum of net interest income and noninterest income.

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Funds transfer pricing – A management accounting methodology designed to recognize the net interest income effects of sources and uses of funds provided by the assets and liabilities of business segments. These balances are assigned funding rates that represent the interest cost for us to raise/invest funds with similar maturity and repricing structures, using the least-cost funding sources available.

Leverage ratio - Tier 1 risk-based capital divided by adjusted average total assets.

Net interest margin - Annualized taxable-equivalent net interest income divided by average earning assets.

Nondiscretionary assets under administration - Assets we hold for our customers/clients in a non-discretionary, custodial capacity. We do not include these assets on our Consolidated Balance Sheet.

Noninterest income to total revenue - Noninterest income divided by total revenue. Total revenue includes noninterest income plus net interest income.

Nonperforming assets - Nonperforming assets include nonaccrual loans, troubled debt restructured loans, nonaccrual loans held for sale, foreclosed assets and other assets. Interest income does not accrue on assets classified as nonperforming.

Nonperforming loans - Nonperforming loans include loans to commercial, lease financing, consumer, commercial real estate and residential mortgage customers as well as troubled debt restructured loans. Nonperforming loans do not include nonaccrual loans held for sale or foreclosed and other assets. Interest income does not accrue on loans classified as nonperforming.

Recovery - Cash proceeds received on a loan that previously had been charged off. The amount received is credited to the allowance for loan and lease losses.

Return on capital - Annualized net income divided by average capital.

Return on average assets - Annualized net income divided by average assets.

Return on average common equity - Annualized net income divided by average common shareholders’ equity.

Risk-weighted assets - Primarily computed by the assignment of specific risk-weights (as defined by The Board of Governors of the Federal Reserve System) to assets and off-balance sheet instruments.

Securitization - The process of legally transforming financial assets into securities.

Shareholders’ equity to total assets – Period-end total shareholders’ equity divided by period-end total assets.

Tangible common capital ratio - Common shareholders’ equity less goodwill and other intangible assets (excluding mortgage servicing rights) divided by total assets less goodwill and other intangible assets (excluding mortgage servicing rights).

Taxable-equivalent interest - The interest income earned on certain assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than a taxable investment. In order to provide accurate comparisons of yields and margins for all earning assets, the interest income earned on tax-exempt assets is increased to make them fully equivalent to other taxable interest income investments.

Tier 1 risk-based capital - Tier 1 capital equals: total shareholders’ equity, plus trust preferred capital securities, plus certain minority interests that are held by others; less goodwill and certain intangible assets, less equity investments in nonfinancial companies and less net unrealized holding losses on available-for-sale equity securities. Net unrealized holding gains on available-for-sale equity securities, net unrealized

Page 28

holding gains (losses) on available-for-sale debt securities and net unrealized holding gains (losses) on cash flow hedge derivatives are excluded from total shareholders’ equity for tier 1 capital purposes.

Tier 1 risk-based capital ratio - Tier 1 risk-based capital divided by period-end risk-weighted assets.

Total fund assets serviced – Total domestic and foreign fund investment assets for which we provide related processing services. We do not include these assets on our Consolidated Balance Sheet.

Total deposits - The sum of total transaction deposits, savings accounts, certificates of deposit, other time deposits and deposits in foreign offices.

Total risk-based capital - Tier 1 risk-based capital plus qualifying senior and subordinated debt, other minority interest not qualified as tier 1, and the allowance for loan and lease losses, subject to certain limitations.

Total risk-based capital ratio - Total risk-based capital divided by period-end risk-weighted assets.

Transaction deposits – The sum of money market and interest-bearing demand deposits and demand and other noninterest-bearing deposits.

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Business Segment Products and Services

Regional Community Banking provides deposit, lending, cash management and investment services to 2.2 million consumer and small business customers within PNC’s primary geographic footprint.

Wholesale Banking provides lending, treasury management, capital markets-related products and services, and commercial loan servicing to mid-sized corporations, government entities and selectively to large corporations. Lending products include secured and unsecured loans, letters of credit and equipment leases. Treasury management services include cash and investment management, receivables management, disbursement services, funds transfer services, information reporting, and global trade services. Capital markets products include foreign exchange, derivatives, loan syndications and securities underwriting and distribution. Wholesale Banking provides products and services generally within PNC’s primary geographic markets and provides certain products and services nationally.

PNC Advisors provides a broad range of tailored investment, trust and private banking products and services to affluent individuals and families, including investment consulting and trust services to the ultra-affluent through its Hawthorn unit and full-service brokerage through J.J.B. Hilliard, W.L. Lyons, Inc. and PNC Investments, LLC. PNC Advisors also serves as investment manager and trustee for employee benefit plans and charitable and endowment assets, and provides nondiscretionary defined contribution plan services and investment options through our Vested Interest^{^®} product. PNC Advisors provides services to individuals and corporations primarily within PNC’s primary geographic markets.

BlackRock is one of the largest publicly traded investment management firms in the United States. BlackRock manages assets on behalf of institutions and individuals worldwide through a variety of fixed income, liquidity and equity mutual funds, separate accounts and alternative investment products. Mutual funds include the flagship fund families, BlackRock Funds and BlackRock Liquidity Funds (formerly BlackRock Provident Institutional Funds). In addition, BlackRock provides risk management and investment system services and products to institutional investors under the BlackRock Solutions® brand name and financial advisory services to institutional investors.

PFPC is among the largest providers of mutual fund transfer agency and accounting and administration services in the United States, offering a wide range of fund processing services to the investment management industry and providing processing solutions to the international marketplace through its Ireland and Luxembourg operations.

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